How Can We Fix the Flawed Auto Recall System?

According to a recent Reuters report, 2014 was the worst year for auto recalls in U.S. history. In fact, a record 63.9 million vehicles were recalled last year, twice as many as the previous record of 30.8 million from 2004. The high vehicle recall rate is alarming, because the current system for notifying owners about recalls is disjointed and ineffective.

One of the most devastating examples of how the system is failing drivers and dealers can be found in the recall of defective Takata airbags. The National Highway Traffic Safety Administration recently revealed that over 7.8 million vehicles are affected by the defect. Unfortunately, because of the flaws in the recall system, it is likely that only a fraction of those cars will be repaired. To date, there have already been an estimated six deaths and over 64 injuries as a result of the defective airbags and the failure to contact the right car owners in time.

Cars switch owners several times and there is no effective, uniform system in place to track new owners. Therefore, many individuals aren’t notified. When car owners aren’t notified, the necessary repairs can’t be made, and millions of drivers are put in danger. Because of the tragic consequences that can result, car dealers must address the challenges of the current system and track their customers for recalls and repairs.

Current Recall System Challenges

The current system depends on car owners returning to the car dealership for service and repairs. If the car has been sold, it may take weeks or even months to locate and notify the new owner. This is a scary thought when statistics show that the auto industry recalled more vehicles than it sold in 2014. The high recall rate illustrates the pressing importance of developing a more effective system.

The frequent change in car ownership is another challenge in locating current vehicle owners. Relevate Auto reports that five years is the average length of time that someone owns a car, although many cars change hands after only three or four years. This fact also increases the difficulty of building and maintaining relationships with customers.

Possible Solutions

Dealers need to track a vehicle through multiple ownership changes, primarily for the purpose of notifying the owner of recalls and providing the necessary repairs. However, the process is broken. For example, if you sold a car to Julia in 2005 and need to contact the current owner of that car in 2015, it could be a challenge. Since a car changes owners every 5 years on average, it is likely that Julia is no longer the contact person. In fact, the same car could have switched owners two or even three times since its original purchase. Do you know who currently owns the vehicle? If not, there is a huge risk at stake.

In the automotive dealership industry, Relevate Auto has found that this is a common problem and that there is a pressing need for better tracking tools. In a recent study performed by Relevate Auto, it found that, on average, 12% of cars sold change ownership. And more often than not, dealers are unaware of the transaction, meaning the new owners won’t receive important recall notifications and repair information.

With a service like Follow the Car, dealers can access a database of owners. Users can identify current owners of specific vehicles, even if the vehicle has switched hands multiple times after leaving the dealership. So, if John now has the vehicle that Julia originally purchased in 2005, the dealer will know how to contact him with important notices and can do so in a timely manner.

Not only is the service instrumental in allowing dealers to send recall and repair notices more quickly, but it can also help them expand their customer base and grow their business. When they bring in new owners for service and repairs, they have the opportunity to form new customer relationships. Instead of simply stopping at the initial sale, dealers can generate revenue from a vehicle throughout its entire life.

The current recall system needs some major improvements. Vehicles frequently switch owners, and the number of recalls is at an all-time high. If dealers fail to contact new owners about recalls and other important information, it can lead to tragic consequences. A service like Follow the Car can help solve the issues that dealerships face when trying to identify and contact vehicle owners, and it can help them form new customer relationships.